The impact of state aid on the survival and financial viability of aided firms
- Author(s)
- Sven Heim, Kai Hueschelrath, Philipp Schmidt-Dengler, Maurizio Strazzeri
- Abstract
We estimate the causal impact of restructuring aid granted by the European Commission between 2000 and 2012 on the survival and financial viability of aided firms. Using a comprehensive dataset we find that restructuring aid decreases the hazard rate of a market exit by 58–68% and increases firms’ average survival time by 8–15 years, depending on the definition of firm survival. We also find that aid receiving firms have a significantly higher probability to improve their financial viability than the counterfactual group in the longer run.
- Organisation(s)
- Department of Economics
- External organisation(s)
- Université de recherche Paris Sciences et Lettres, Zentrum für Europäische Wirtschaftsforschung (ZEW ), Centre for Economic and Policy Research, CESifo Research Network, Österreichisches Institut für Wirtschaftsforschung (WIFO), Universität Konstanz
- Journal
- European Economic Review
- Volume
- 100
- Pages
- 193-214
- No. of pages
- 22
- ISSN
- 0014-2921
- DOI
- https://doi.org/10.1016/j.euroecorev.2017.08.005
- Publication date
- 11-2017
- Peer reviewed
- Yes
- Austrian Fields of Science 2012
- 502046 Economic policy, 502010 Public finance, 502039 Structural policy
- Keywords
- ASJC Scopus subject areas
- Economics and Econometrics, Finance
- Portal url
- https://ucris.univie.ac.at/portal/en/publications/the-impact-of-state-aid-on-the-survival-and-financial-viability-of-aided-firms(69819d0e-8fc0-4998-a27d-b7e90dec9936).html